The new Queenstown Car Fair is increasing its car space from 60 to 200 vehicles and has permission to host the event seven times a year, with the second fair scheduled for March 22 at the Queenstown Events Centre.
However, a Queenstown car dealer says the car fair could attract unlicensed dealers selling cars illegally.
The inaugural fair, organised by automotive workshop World Cars owners Sean and Jodie Squires, attracted more than 70 cars in late January, with cars still selling earlier this week.
"This [event] acts as a start point for negotiation and goes on from there. I'd heard of one selling earlier this week," Mr Squires said.
The fair was inspired by the number of cars seen for sale on public streets around Queenstown, and they will attempt to run them before and after the ski season to make the most of seasonal supply and demand.
However, the concept has not found universal approval, with Alpine Motor Group general manager Jimmy Allen saying it was "just another car yard".
Branch manager of GWD Russells in Queenstown Darryl Shepherd said when contacted it was a "good concept", giving people leaving the district another option to sell cars at the fair, but he was "sitting on the fence" as to whether the fair would help or hinder his own business.
He warned that "backyard unlicensed dealers would no doubt be attending any fairs" and attempting to sell several cars at any one time.
Mrs Squires said having permission to use the grassed area of the Events Centre would increase the space available from 60 to 200 cars.
The car fair was initially mooted as possibly a monthly event, but Mr Squires was waiting to ascertain the response to the second fair. The couple also had to take into consideration whether car sellers would be interested in coming along during the winter months.
Mrs Squires said seven fairs could now be hosted during the year and it was likely that it would not be held in the colder months of July and August and the busier December period.